Firms have less pricing power if their firm-level product is more unique.
a. true
b. false
Ans: b. false
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The number of firms in an oligopolistic industry
A) must be less than 10. B) must be less than 20. C) must be small enough that firms are interdependent. D) must be large enough for firms to be independent.
Rawiri deposits $350,000 into Country Capital Bank. Country Capital’s required reserve ratio is 15 percent. How much of Rawiri’s deposit can the bank lend to borrowers?
a. $52,500 b. $350,000 c. $200,000 d. $297,500
A monopolist engages in price discrimination
A. by charging a higher price to consumers whose demand is more elastic. B. by charging a higher price when marginal cost is lower. C. by charging the same price to all consumers. D. by charging a lower price to consumers whose demand is more elastic.
In the diagram, at $10 million of R&D expenditure, the:
A. expected rate of return exceeds the interest-rate cost of funds.
B. firm is spending an optimal amount on R&D.
C. interest-rate cost of funds exceeds the expected rate of return.
D. marginal benefit of R&D is less than the marginal cost of R&D.